The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use

49 Pages Posted: 1 Jul 2019 Last revised: 1 Feb 2021

See all articles by Michael Pesko

Michael Pesko

Georgia State University - Department of Economics

Charles Courtemanche

University of Kentucky

Catherine Maclean

Temple University

Date Written: June 2019

Abstract

We study the effects of traditional cigarette tax rate changes and e-cigarette tax adoption on use of these products among U.S. adults. Data are drawn from the Behavioral Risk Factor Surveillance System and National Health Interview Survey data over the period 2011 to 2017. Using a differences-in-differences model, we find that higher traditional cigarette taxes reduce adult traditional cigarette use and increase adult e-cigarette use, suggesting that the products are economic substitutes. E-cigarette tax adoption reduces e-cigarette use, with some heterogeneity across groups, and dilutes the own-tax responsiveness of traditional cigarettes.

Suggested Citation

Pesko, Michael and Courtemanche, Charles and Maclean, Catherine, The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use (June 2019). NBER Working Paper No. w26017, Available at SSRN: https://ssrn.com/abstract=3412691

Michael Pesko (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Charles Courtemanche

University of Kentucky ( email )

Catherine Maclean

Temple University ( email )

Philadelphia, PA 19122
United States

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